House deposit

[ineedsomepeace]

Do mortgage lenders look for favourably on a 25% deposit?

More so than 20%, less so than 30%.

To be honest, our bank were falling over themselves to lend us money because we had 20% deposit, perfect credit scores, no money lent from parents for the purchase, and no dependents or expensive hobbies/needs. And we're both on an income that could pay the whole household expenses if one of us lost our jobs, so sailed through the stress testing.

We got our mortgage offer confirmed two hours after the appointment.

I think they care more about being able to get payments back from you on what YOU oe THEM, not the money you have for yourself over the minimum threshold for deposit. I mean, that's equity they'll never see.

It does depend on other factors, such as data on your credit file, but assuming no adverse credit issues, having a 25% deposit will mean you qualify for a really good interest rate as it would be a 75% loan to value mortgage.

The next tier down is 40% deposit and 60% loan to value mortgage, but in all honesty the interest rate isn’t that much better.